Teekay Tankers Ltd (TNK)

[LegitStockFly]

With recent intrigue in ship stocks centered around cruise lines such as Norwegian Cruise Lines (NCLH) Carnival Cruise Lines (CCL) and Royal Caribbean Cruise Lines (RCL) Tanker ships are being overlooked. Maybe it's time to take a look at one in particular that is absolutely beating earnings by far and poised to double in share price quickly. Teekay’s tanker fleet (TNK) isn’t a just used to transport oil — it’s also used to store oil when supply exceeds demand. Either way, Teekay gets paid. And in the company’s first-quarter results, you would be hard-pressed to see any ill effects from the pandemic or the oil price war: “In the first quarter of 2020, Teekay Tankers achieved its highest quarterly adjusted profit in more than 10 years, with adjusted net income of approximately $110 million, or $3.27 per share, and I am pleased to report that our fleet has continued to secure strong spot rates in the second quarter of 2020 to-date.”

In addition, the company is aggressively eliminating debt. It sold off several under-utilized ships to help pay $200 million of its debt during the quarter, knocking that down to $730 million.

After several flat years, TNK stock began to rise dramatically toward the end of 2019. It has had a tumultuous 2020.

With a recent concensus price target at $26 TNK is in position to double it's share price quickly.